# In the matter of Pydah Educational Academy vs. State of Andhra Pradesh and Ors.

> HC judgment dated 2025-05-05. Citation: TCN-2025-HC-00071. Pydah Educational Academy filed a review petition against an order passed in Writ Petition No.…

- **Court:** HC
- **Order date:** 5 May 2025
- **Citation:** TCN-2025-HC-00071
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/bombay-high-court-panaji/pydah-educational-academy-vs-state-of-andhra-pradesh-and-ors-082ee7d3

## Summary

### Background

Pydah Educational Academy filed a review petition against an order passed in Writ Petition No. 22983 of 2022. The dispute concerns the attachment of property by the Commercial Tax Department due to unpaid dues of M/s. Sri Lakshmi Srinivas Jute Mills Limited, from whom the petitioner purchased the property.

## Facts

Pydah Educational Academy purchased property from M/s. Sri Lakshmi Srinivas Jute Mills Limited.

Sri Lakshmi Srinivas Jute Mills Limited defaulted on payments to the Commercial Tax Department under the A.P. VAT Act, 2005.

The Commercial Tax Department attached properties of the Jute Mills, including the property sold to the petitioner.

Insolvency proceedings were initiated against the Jute Mills before the NCLT Bench, Amaravati.

A resolution plan was approved by the NCLT, where the State Government was given the status of an operational creditor and awarded a sum of Rs.78,04,413/-.

The petitioner contended that the approved resolution plan extinguished the state's claims against the Jute Mills.

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## Issues and analysis

### Issue 1: Whether the approved resolution plan under the Insolvency and Bankruptcy Code (IBC) extinguishes …

**Ratio:** Once a resolution plan is duly approved by the adjudicating authority under sub-section

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**Reasoning:** The court relied on Sections 30 and 31 of the IBC, as well as the Supreme Court's

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**Interpretation:** The court interpreted Section 31 of the IBC to mean that the liability of any

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**Application:** In this case, the dues of the State were set out in the resolution plan, and

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## Parties

- **Judges:** R. Raghunan…; T. Mallikarjuna…
- **Appellants:** Pydah Educational…
- **Respondents:** Lakshmi Srinivas…; State of Andhra…; +5 more
- **Other parties:** Kalabu…; State Gove…
- **Advocates:** M. Naga D…; K. Raghavac…; +1 more

## Timeline

- **2020-07-31 — Deed of…**: Pydah Educational Academy purchased property from M/s. Sri Lakshmi Srinivas Jute Mills…
- **2020-11-27 — Attachment…**: Commercial Tax Department attached…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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